Sample Questions

IC 02 Practice of Life Insurance Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 For which specific type of policies is the "Days of Grace" rule not strictly enforced if the premium is deducted by an employer?

A. Unit-Linked Plans (ULIPs)
B. Salary Savings Scheme (SSS) Correct Answer
C. Online Term Plans
D. All of the above

Explanation:

In a Salary Savings Scheme, if the employer deducts the money from your pay on time, the premium is considered paid even if it reaches the insurer a bit late.

Marks: 1

Q2 What are the primary reasons why insurance agents are considered necessary in the industry?

A. To provide customized advice to potential customers
B. To gather all necessary and relevant information from the applicant
C. To earn a high commission from the insurance company
D. Both A and B Correct Answer

Explanation:

Agents are vital because they provide personal guidance to help customers choose the right plan and act as the company's "eyes" to collect important data for risk assessment.

Marks: 1

Q3 Which rider provides a supplementary payment to the family if the policyholder dies specifically because of an accident?

A. Critical Illness Rider
B. Guaranteed Insurability Rider
C. Accidental Death Benefit Rider Correct Answer
D. Waiver of Premium Rider

Explanation:

The Accidental Death Benefit Rider is an add-on that pays an extra amount, over and above the basic sum assured, if the death is accidental.

Marks: 1

Q4 Which group insurance scheme is technically a "One Year Renewable Group Term Assurance" (OYRGTA)?

A. Group Gratuity
B. Group Superannuation
C. Group Term Life Correct Answer
D. Group Savings Linked Insurance

Explanation:

OYRGTA is a low-cost plan where the contract and price are reviewed and renewed every single year.

Marks: 1

Q5 "Vesting" in an annuity plan refers to:

A. The date the policy is purchased
B. The date the insurance company starts paying the pension Correct Answer
C. The date the insured dies
D. The date the premium increases

Explanation:

The vesting date is when the "accumulation" phase ends and the regular income (pension) payments begin.

Marks: 1

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